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What to Do If I Have a Bad Credit Rating

| In Buying Guides

In an ideal world everyone would have a great credit rating; unfortunately that is not the case. When it comes to getting car finance, your credit rating is important. When it comes to buying a car, finance is a very popular option. But a poor credit rating can dismiss this option for plenty of people. If you have a poor credit rating then you may be worried about what to do when it comes to getting car finance, but with these tips from Cargiant you can make sure that you do your best to qualify for finance.


If you know you have a bad credit rating then the most important thing that you can do is to build up that credit rating by showing lenders that you are reliable and will pay back money that you owe. We recommend that the best way that you can do this is to get a credit building credit card. These are cards which have low limits such as £250 and a very high-interest rate. This gives you a great opportunity to show your trustworthiness to the banks with little personal risk. 2 companies that offer such cards are Aqua and Luma. 



It is important to know that one of the key elements involved with banks granting finance agreements is if your history can be traced. They do this in a few ways, but one of the simplest ways for you to help this process is to register to vote. Registering to vote means that your details are saved on an official government system and is irrefutable evidence that you have not just appeared in mid-air!

Another way you can help the banks to trace your history is to keep changing your address on your driving license. This gives the lender evidence of your history. It is also worth noting that if the Police stop you and you have the wrong address on your license then you can be fined £,1000.



It is important to note that if two people are applying for car finance together, then the lender will take both of their credit histories into account. So if one person has some bad history then it will negatively influence the joint application even if the other person’s history is perfect.

We strongly recommend that you use a personal credit tool such as Experian Credit, Equifax and Callcredit to keep an eye on your personal finances. This allows you to protect yourself should the unexpected happen. If you are incorrectly charged by something that you did not sign up for, then spotting it and contacting the appropriate person will protect your credit rating.

Likewise if you are self-employed, then you know the importance of carefully watching your own tax payments. Failure to keep on top of your own tax indicates to lenders that you are not a trustworthy candidate for finance. Even though careful bookkeeping will take up a lot of your time, it is extremely important for your credit rating.

To see what credit options Cargiant can provide click here.

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